The Economic Environments Facing Business

The Economic Environments Facing Business1Daniels Ch 4 Eco Environment IntroductionManagers study Economic environments to estimate how trends affect their performance.A countrys economic policies are a leading indicator of Govts goals and its planned use of economic tools and market reforms.Economic development directly impacts citizens, mangers, policymakers and institutions.Page: 1432Daniels Ch 4 Eco Environment International Economic AnalysisPage: 1443Daniels Ch 4 Eco Environment Elements of Economic EnvironmentPage: 145/146/1474Daniels Ch 4 Eco Environment Elements of Economic Environment (Contd.)Page: 148-1515Daniels Ch 4 Eco Environment Other Proposed IndexesPage: 1526Daniels Ch 4 Eco Environment Green Measures of GNPPg: 153/1547Daniels Ch 4 Eco Environment Features of An Economy8Daniels Ch 4 Eco Environment InflationInflation is the measure of the increase in the cost of living.It has influence on:Interest ratesExchange ratesCost of livingGeneral Economic confidenceStability of the political systemPage: 1549Daniels Ch 4 Eco Environment InflationPage: 154/15510Daniels Ch 4 Eco Environment Unemployment Unemployment Rate is the number of unemployed workers who are seeking employment for pay divided by the total civilian labour force.Misery Index: Sum of a countrys inflation and unemployment rates.The higher the sum, the greater the economic misery, and the more likely the consumers and companies will curtail spending and investment.Page: 15511Daniels Ch 4 Eco Environment DebtPage: 15612Daniels Ch 4 Eco Environment Income DistributionIncome Distribution is a description of the fractions of a population that are at various levels of income.The Gini Coefficient: Managers estimate income distribution in a particular country by examining its Gini Coefficient.This measure assesses the degree of inequality in the distribution of family income in a country.Page: 15713Daniels Ch 4 Eco Environment PovertyIt is a condition in which a person or a community is deprived off, or lacks the essentials for a minimum standard of well being & life.These essentials can be life sustaining materials such as food, safe drinking water, education, health care, social status or the opportunity to develop meaningful connections with other people in the society.There is a growing gap b/w the rich and the poor in virtually every country in the world.Page: 15814Daniels Ch 4 Eco Environment Poverty according to World BankPage: 15815Daniels Ch 4 Eco Environment Labour CostsPage: 15916Daniels Ch 4 Eco Environment ProductivityPage: 16017Daniels Ch 4 Eco Environment The Balance of PaymentsPage: 16018Daniels Ch 4 Eco Environment Types of BoPPage: 16119Daniels Ch 4 Eco Environment Importance of BoPPage: 16120Daniels Ch 4 Eco Environment Economic SystemsAn Economic system is a set of structures and processes that guides the allocation of resources and shapes the conduct of business activities in a country.It is a mechanism that deals with the production, distribution and consumption of goods and services.Page: 16421Daniels Ch 4 Eco Environment Types of Economic SystemsPage: 164 to 16622Daniels Ch 4 Eco Environment Economic Freedom & Market TransitionsEconomic Freedom is defined absence of Govt. coercion or constrains on the production, distribution or consumption of goods and services beyond the extent necessary for citizens to protect and maintain liberty itself.Countries with the freest economies have had the highest annual growth and a greater degree of wealth creation.Page: 16723Daniels Ch 4 Eco Environment Economic Freedom IndexThis index estimates the extent to which the Govt of a country intervenes with the principles of free choice & free enterprise for reasons that go beyond the basic need to protect property, liberty, citizen safety and market efficiency.It rates in terms of 50 independent indicators that are organised into 10 dimensions.Higher the score on a factor, lower the level of Govt interference.Page: 16724Daniels Ch 4 Eco Environment Making Transition to a Market EconomyThe Economic Freedom Index has straightforward implications to the origins & causes of economic development.The countries ranking highest on the economic freedom like Singapore & UK tend to have the fastest economic growth and highest living standards.Page: 169/17025Daniels Ch 4 Eco Environment Means of Transition Page: 173/17426Daniels Ch 4 Eco Environment ExplanationsPage: 172 to 17427Daniels Ch 4 Eco Environment Reference:International Business Environments & Operations 12th EditionAuthors John D. Daniels, Lee H. Radebaugh, Daniel P. Sullivan, Prashant SalwanPublisher Pearson, Publishing Year 2010Chapter 4 The Economic Environments facing Business Inputs by Pratchi nanda, MIB II sem Feb 201528Daniels Ch 4 Eco Environment